What is CIBIL Score? Know About CIBIL Credit Score

CIBIL Score

Many individuals have this question in their mind that what is CIBIL score? And why it is important to have good credit scores. It is a three digit number which signifies your credit history and this Transunion score is basically calculated with the help of credit report by Credit Information Bureau India Limited.

What is CIBIL Score

If any individual has a low credit score then your loan application can be initially rejected and on other hand, the high credit score will represent good, then loan application will be sanctioned. So, this way the bank can check your repayment capabilities and can safely provide you loans for house, vehicles, personal and credit card loans.

CIBIL Score Details

CIBIL credit score plays a pivotal role in process of loan and credit card approval. Actually, this is the foremost thing which is considered by almost all banks and financial organization while reviewing loan application of individuals. If you have good credit scores, then it will be helpful in determining the creditworthiness. In fact, you can know about the present financial standing as per your credit scores.

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Factors Affecting CIBIL Credit Score

Individuals must know that CIBIL Score is a numeric summary of credit history which is calculated based on some factors. We are providing some Factors That Can Affect CIBIL Score, so please have a look!!

Positive Factors Negative Factors
  • On time loan EMI payments.
  • Regular payment of credit card bills.
  • Avoiding over-leveraging.
  • Maintaining strong financial records.
  • Too many forms of credit (such as unsecured personal loans)
  • Proper utilization of approved credit limit.
  • Ensuring banks and other financial institutions
  • Requesting and maintaining a copy personally
  • Too many credit report enquiries
  • Cheque bounces/dishonours.
  • Irregular loan repayments.
  • Defaulting on credit card bills
  • Making late payments or consistent part payments.
  • Too much unsecured credit
  • Multiple applications for unsecured loan getting rejected.
  • Defaulting as a guarantor.
  • High utilization of approved credit limit
  • Errors in record by banks and other finance institutions.

 

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Good CIBIL Score details

A CIBIL score can range from 300 to 900 with 300 being the bottom end and 900 being the best score possible. Here is what your score could mean.

0 or -1 Individuals having score of 0means they have no credit history created via a credit card or loans.
350 – 550 This score shows that you have been defaulting on payments and the chances of getting new loans/credit cards are negligible.
550 – 650 This CIBIL Score indicates that you pay your payments on regular basis and

Can be trusted with new loans and cards. Your loan applications are also likely to be approved.

650 – 750 This score shows that you are at right path and able to reach the best CIBIL Score too.
750 – 900 It is Good CIBIL Score and shows that you are regular with your payments.

 

Benefits of Having a Good Credit Score

If you get successful in maintaining a good CIBIL credit score, then there are multiple benefitsyou can enjoy for ensuring smooth financial activities.

  • There will be more effective and speedier process of credit application’s processing
  • Credit cards are available at low interest
  • Maximum limit on credit cards can be availed
  • Higher probability to negotiate interest rates on loans
  • Endorsement of rented houses without any difficulties

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How To Get Free CIBIL Score Online?

According to the norms decided by reserve bank of India, all the companies of credit information in India must provide the 1 fee credit report on request once in financial year. And the credit report will comprise of the credit scores of the individuals.

If you want to check CIBI credit scores online, then you can visit the official website and follow the option given for “get your free report” link to access your scores. So, through this way you can get to know How To Check CIBIL Score.

Hope, you are assured from the details of what is CIBIL Score? Know about CIBIL Credit Score, presented on this page given by customer-carenumber.com and if you still want to know more about it, visit to the Official Link.

You Should Put An Eye On This!!!

Why CIBIL Score Is Important? CIBIL Frequently Asked Questions
How To Correct Mistakes In CIBIL Report? CIBIL Defaulter List
How To Improve CIBIL Score? CIBIL Full Form

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